Companies used to require ledgers and books to keep account information straight, but now it is possible to rely on convenient and organized account reconciliation software. Bank reconciliation software allows companies to keep track of their finances and expenditures in a professional and uncomplicated manner. Many people use bank software for personal accounts, but it is just as easy to use simple financial reconciliation software for business accounts and finances.

Cash reconciliation software is beneficial for companies that have a petty cash allotment and want to keep easy track of such funds, while most companies will find a use for checking and savings account bank reconciliation software. Bank reconciliation software basics can help you learn to:

1. Limit the amount of paperwork around the office with account reconciliation software.

2. Keep organized records for easy access and verification.

3. See up-to-the-minute account information with a bank reconciliation program.

Action Steps
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Use account reconciliation software on a regular and consistent basis to be effective

In order to be useful, bank account reconciliation software and programs need to be used on a regular basis. Otherwise, these programs are of no use. Many people use appropriate bank software to keep ahead of the financial times, not strictly as a record of past events. Bank rec software is used to reconcile the bank account statements presented to account holders at the end of the month, but to have all the information available to account holders ahead of time. Knowing how and when to use account reconciliation software is very important.

I recommend: For simple instructions on bank reconciliation statement software, consider Suite101.com. Small businesses may benefit from learning about the realistic expectations regarding bank reconciliation from ToolKit Media Group, while Accounting Issue also offers information on how to perform bank account reconciliation.

Investigate free software for bank reconciliation and purchasable account reconciliation software

There are a number of beneficial free bank reconciliation software programs on the market today. However, many of these programs are limited in what they can and cannot offer the customer. If you have more advanced account or bank reconciliation software needs, you might want to consider a purchasable program with extended features. It is important to find a program you feel comfortable with to ensure proper and consistent usage for maximum benefits.

I recommend: For free reconciliation software, consider the programs listed at Free Download Manager. CYMA Systems offers a selection of software products for sale, including business financial software, nonprofit organization software and other financial reconciliation software specialty versions.

Limit delays and errors in account reconciliation software programs by importing facility data

For businesses with a high rate of transaction each day, managing accounts can be an uncomfortable burden. When there are delays in reconciling account transactions, backlogs and decreased management control may develop. In an effort to increase functionality, try using programs that can import data as a batch or in real time. This software should be capable of handing a variety of popular and used file types. Businesses will be required to manually enter less information for their account reconciliations. This may also help eliminate the incidences of human error.

I recommend: AutoRek offers reconciliation software solutions that can allow 99% of reconciliations to take place automatically. MBAWare has a similar product that helps automate reconciliation processes to make the task less tedious.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make the most of your bank account reconciliation software and free desks of clutter. Once documents have been used in the verification of bank reconciliation, they can simply be stored away -- they don't need to be easily within reach. All the information needed for such activities could be easily accessed on the computer in a quick and convenient manner, eliminating the need for immediately available paper records.

A key part of managing your business is knowing exactly what your financial picture looks like—which checks have cleared, which are outstanding, and how much cash your company has at any given moment. Using bank reconciliation software can help you do this more effectively, allowing you to quickly spot and correct errors, and giving you an up-to-date look at your company's financial situation.

Account reconciliation software can help you:

1. Catch errors early — before you issue financial statements.

2. Stay compliant with federal rules and guidelines.

3. Save time and allow you to focus on other areas of your business, with bank software designed to automate many of the most time-consuming tasks.

Action Steps
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Make sure your account reconciliation software is compatible with your current financial software

You may already have a financial software system in place, whether it's for accounting, billing or payroll, or simply a spreadsheet on which you record transactions. Your bank reconciliation software needs to integrate with that current system if it's going to save you time and increase your efficiency.

I recommend: Bank reconciliation software from BankReconciliation.com is universally compatible, for seamless integration with programs like Quickbooks and PeopleSoft. It's also compatible with several operating systems, including Microsoft Windows 95; Windows 98; Windows ME; Windows NT 4.0 (Service Pack 6 or 6a); Windows 2000, and Windows XP. To test it for yourself, try the free download, which includes a full-service version with a 7-use license.

Make sure your bank software is Sarbanes-Oxley compliant

The Sarbanes-Oxley Act, passed in 2002, established new, stricter guidelines regarding the storing of electronic records. The act is mandatory and applies to all businesses, large or small, so it's imperative that your records are up-to-date and accurate before you issue any financial statement. Finding reconciliation software that's already set up to comply with the act can help save you time in reconciling accounts.

I recommend: RecWizard is designed with the Sarbanes-Oxley Act in mind, featuring clearly documented records that are easy to audit. You can also set up multiple user IDs at different authority levels, to clearly show levels of records review.

Ask about security features of on-demand financial reconciliation software

On-demand, or hosted, software is a good choice for many smaller businesses because it reduces the costs associated with installing and implementing a new system. On-demand bank rec software is housed on the vendor's system, and you access it via the Internet. But with on-demand software, you also give up some of the control, which is why it's crucial that you ask vendors what security features they have to safeguard your company's sensitive financial data.

I recommend: Trintech's On-Demand Solutions include enhanced security features that still allow for flexibility, and efficient processing. These security features include an Internet firewall, anti-virus protection, and the storage of client information on a second set of servers inside a secure network.

Consider custom software solutions

Maybe you can't find any cash reconciliation software with just the features you need, or that integrates well enough with your current software system. Many companies will design custom software based on your business' or industry' specific needs, and your existing computer system.

I recommend: Front Row will work with your company's IT department to create a solution that integrates with your IT infrastructure. The company's software is also flexible, so that you can adapt it as your needs change.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before you invest in a cash reconciliation software program, look into free bank reconciliation software. Most vendors provide free demo versions, and by evaluating this free bank reconciliation software first, you can be sure the system is right for you.

Bank reconciliation software works by taking data from bank statements and comparing it to a company's general ledger. Items are matched between the two sets of data to show which checks and transactions have cleared, and to find entries that are not reconciled. To be effective, bank reconciliation software must be compatible with your existing financial and general ledger software, comply with auditing and government regulations and provide adequate reporting and security. Get to know the key terms used in bank reconciliation software to find the right application for your needs.

Action Steps
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SAS 70 standards

Statement on Auditing Standards (SAS) No. 70, Service Organizations, is an auditing standard that was developed by the American Institute of Certified Public Accountants. SAS 70 standards are used to establish control objectives and control activities for information technology, including data storage and reconciliation activities.

I recommend: See SAS70 for complete details about SAS 70 standards.

Sarbanes-Oxley compliance

The Sarbanes-Oxley Act of 2002 sets extensive reporting and recordkeeping requirements on all publicly-traded companies. Bank reconciliation software requires extensive reporting and security to be Sarbanes-Oxley compliant.

I recommend: See StatSoft for information about the Sarbanes-Oxley Act and compliance details.

Hosted

Hosted software resides on a remote server and is accessed on demand over the Internet. One of the benefits of hosted software is that a company does not have to purchase and maintain software and hardware to run the program.

I recommend: View the Trintech Technologies website for information about its hosted bank reconciliation software.

Retail

Retail bank reconciliation software is helpful when there is more than one store or a chain of stores, since it tracks deposits and accounts by each store. It allows managers at all levels to check data for each store.

I recommend: See RedPrairie for an explanation of its retail bank reconciliation software.

Matching rules

Bank reconciliation software uses rules to match transactions with ledger entries. It may use the check number, monetary amount, other variables or a combination of factors.

I recommend: See Treasury Software for a look at how its software program matches transactions to ledger items.

Bank reconciliation journal

A bank reconciliation journal lists items that are included on a bank statement, but not recorded in the general ledger. The adjustments include the bank service charges, fees and earned interest.

I recommend: Check out Scribd for an example of a bank reconciliation journal.

Account reconciliation software can assist your business with adjusting your bank's reported account balance to reflect your company's financial transactions that have occurred since that statement date. Once you've found this type of bank software, it's a good idea to take advantage of training opportunities available. Bank reconciliation software is especially useful for companies who have a lot of monthly bank transactions.

Training for purchased or free bank reconciliation software is helpful for any staff that deals with your company's bookkeeping. This software automates tasks that are normally very time consuming and tedious if done manually. Bank reconciliation software education and training can come in many forms, including:

1. Training offered by reconciliation software providers so you use the software to its fullest potential.

2. Webinars and seminars on financial reconciliation software offered by software providers, software consulting and training companies, retailers and more.

3. Classes and courses on cash reconciliation software for businesses.

Action Steps
The best contacts and resources to help you get it done

Get bank reconciliation program training from software providers

Software providers are often the best source for training on their own software programs. Sometimes a training package is included or can be added to the cost when you purchase bank reconciliation software from them.

I recommend: Visit the Training Center at Cougar Mountain for many different ways to train your staff to get the most out of your software. Training includes road shows, classes, client-site learning, e-Learning, online learning and other resources for learning time-saving shortcuts and exploring the newest features. CYMA Systems offers manuals, online classes through the company's Virtual Classroom and customized consulting services for using CYMA bank reconciliation software. You can have the consulting team perform installation, provide specific module training, perform implementation assistance, help with payroll configuration and year-end processes.

Attend webinars and seminars on bank account reconciliation software

Seminars and webinars are an easy way to get educated on bank reconciliation software in a short amount of time and at your own convenience.

I recommend: Get involved in Trintech's webinar series to learn more about using cash reconciliation software to save money for your business. Attend Sage-authorized seminars by Blytheco for basic and advanced training on Sage bank reconciliation statement software, including the Sage MAS 90 and Sage MAS 200 account reconciliation modules.

Find classes on bank reconciliation software

Attend classes to learn the correct procedures to reconcile your company's bank statements in the most time-efficient manner possible.

I recommend: Training Connection provides classes on bank reconciliation using QuickBooks software. Get free tips and tricks for bank reconciliation with QuickBooks from AD Singleton, certified QuickBooks Proadvisors. If you use Microsoft Dynamics, consider attending classes online or on-site. Save On Training has a one-day course on using Microsoft Dynamics for bank reconciliation.